Discusses pricing formula and other fees, value-added tax (VAT), etc.
Last Published: 7/12/2019

Except in limited circumstances, markets determine prices.  But prices for some products – such as hydrocarbons, sugar, maize, natural oils, and bread -- are regulated by the Bolivian government.  The National Authority of Hydrocarbons and the Ministry of Productive Development and Plural Economy regulate the sale and price determination of the above-mentioned products and issue a certificate ensuring sufficient internal supply and a "fair" price of the goods prior to any export.  The "fair" price is the government-defined price for any good or service.

Municipal governments determine the price of garbage collection services and through the Authority of Basic Services (Autoridad de Fiscalización y Control Social de Agua Potable y Saneamiento), the price of water.

Bolivia does not subsidize agricultural exports.  Rather, the country limits agricultural exports until producers can demonstrate that internal demand has been met at "fair prices."  Supreme Decree 348 issued in October 2009 limited sugar and meat prices to what the government determined was a "fair price," but the Bolivian government is currently struggling with enforcement.  If internal prices rise above what the government determines is a "fair price," due to weather conditions or other causes, the government can prohibit the export of agricultural goods in order to protect internal supply and prices.  Exporters must request a certificate of internal sufficiency of supply (particularly in the aforementioned sales of natural oils, rice, and sugar) and a "fair" price before being permitted to sell abroad. 
The Bolivian government buys soy from small farmers at preferential prices.  Oilseed producers thus encounter artificially higher prices when buying on the spot market.

The Bolivian tax system is regulated under the Law of Taxing Reform (Law 843).  This law specifies all taxes applied by the government and the characteristics of each tax.  A value added tax is applied to all transactions of goods and services inside Bolivian territory and on imported goods.  The value added tax rate in Bolivia is 14.94 percent (13 percent nominal).

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